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Grocery sales shrink as inflation bites

/ 3rd May 2022 /
Cormac Cahill

Grocery sales were in decline as inflation hit 4.7% in the 12 week period ending April 17, the highest since September 2013, according to the latest Kantar research.

Take-home grocery sales declined by 7.2% compared to the same period last year, as inflation looks to be adding €330 to the average household grocery bill.

Kantar's latest research also showed an increase of 3.9% in online sales, bringing in an additional €2m on digital platforms, pushing online market share to 3.3 percentage points higher than the same 52 week period in 2019.

Emer Healy, senior retail analyst at Kantar said "The impact of grocery inflation is being felt widely across store shelves and consumers will be noticing the effects on their budgets.

"The average household is facing a €330 price increase on their annual grocery bill, and 23% of households say they are now struggling to make ends meet when it comes to their weekly food shop."

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"Many people became more reliant on online shopping over the course of the pandemic, and this has fitted in quite naturally with our busier schedules post-COVID. In the context of rising prices it also allows consumers to be more considerate as they add items to their basket."

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Take-home grocery sales declined by 7.2% in the period for the 12 week period ending April 17. (Pic: Getty Images)

The decline is the first since the pandemic when households were forced to remain indoors, with only essential shopping, which included supermarkets, available.

Healy continued: "The pandemic might no longer be the first thing on shoppers’ minds, but we’re still seeing its effects on the grocery market as life gets back to normal.

"The number of supermarket trips made each month has continued to fall, with shoppers making 3.5 fewer visits on average than this time last year when COVID-19 restrictions were much tighter. The average spend per buyer has also fallen significantly by €144 as consumers eat more meals out of the home."

All the major retailers saw take-home grocery sales fall in the 12 weeks to 17 April 2022. Dunnes has retained its position as Ireland’s largest grocer, holding a 22.4% market share in the latest 12 weeks.

SuperValu holds a 21.8% share of the market. Tesco follows closely behind at 21.7%, meaning that there is now just 0.1 percentage point between the retailers. Lidl and Aldi account for 13.0% and 12.1% of the market respectively.

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